{"id":548178,"date":"2025-09-08T09:32:05","date_gmt":"2025-09-08T09:32:05","guid":{"rendered":"https:\/\/www.capgemini.com\/fi-en\/?post_type=press-release&#038;p=548178"},"modified":"2025-09-11T09:34:30","modified_gmt":"2025-09-11T09:34:30","slug":"the-automotive-industry-accelerates-toward-a-software-driven-future-with-revenue-share-expected-to-double-during-the-next-decade","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/fi-en\/news\/press-releases\/the-automotive-industry-accelerates-toward-a-software-driven-future-with-revenue-share-expected-to-double-during-the-next-decade\/","title":{"rendered":"The automotive industry accelerates toward a software-driven future, with revenue share expected to double during the next decade"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tThe automotive industry accelerates toward a software-driven future, with revenue share expected to double during the next decade\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Sep 8, 2025<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"hero-press-release-downloads\">\n\t\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md-6 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rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-icon\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-details\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-title\">Download Infographic<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-props\">1 MB  pdf<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<ul class=\"wp-block-list\">\n<li><em>Over the past five years, software initiatives have resulted in average efficiency improvements of 14%, with benefits projected to reach 24% by 2029<\/em><\/li>\n\n\n\n<li><em>Most automotive organizations anticipate that software will be the single biggest source of competitive advantage over the next five years, but so far only a few have fully scaled their efforts<\/em><\/li>\n<\/ul>\n\n\n\n<p><strong>Paris, September 8, 2025 \u2013 The automotive industry is undergoing a transformation as software becomes increasingly central to its business strategy and operations. According to a new report from the <\/strong><a href=\"https:\/\/www.capgemini.com\/\"><strong>Capgemini<\/strong><\/a><strong> Research Institute, <em>\u2018<\/em><\/strong><a href=\"https:\/\/www.capgemini.com\/fi-en\/insights\/research-library\/software-in-automotive\/\"><strong><em>The software-driven mobility era: Beyond vehicles\u2019<\/em><\/strong><\/a><strong>, nearly all automotive organizations (92%) now anticipate that every automotive company will transition to a software company to support Software Defined Vehicles (SDVs) and software-driven mobility (SDM)<a id=\"_ftnref1\" href=\"#_ftn1\"><strong>[1]<\/strong><\/a><\/strong> <strong>services. Over eight in ten\u00a0believe that software-defined products and services, not just the physical vehicle, will become their core value proposition.<\/strong><\/p>\n\n\n\n<p>According to the report, while ambitions are strong, less than half of automotive organizations have scaled their SDM initiatives in 2025:<a> <\/a>34% have partially scaled at least one SDM use case, and just 14% have achieved full-scale deployment.<\/p>\n\n\n\n<p>While decoupling hardware and software has emerged as crucial to enable faster innovation, drive improved scalability, and unlock new revenue streams, the survey shows that only one in ten original equipment manufacturers (OEMs) has made progress in this journey, with just over a quarter actively piloting new approaches.<\/p>\n\n\n\n<p><em>\u201cFor decades, automotive leadership <\/em><em>was driven by hardware <\/em><em>but today consumers demand connected, digitally enhanced experiences. This calls for adoption of a software first approach across the value chain to enable holistic mobility solutions,\u201d <\/em>said Laurence No\u00ebl, Global Head of Automotive at Capgemini. \u201c<em>Forward\u2013looking automotive organizations are already treating software as their core product and leveraging key partnerships to expand their ecosystem. While the ambition is high, it <s>r<\/s>equires a complete organizational overhaul. Those that align their talent, platforms, and partnerships, while fostering trust and delivering an elevated customer experience, will stay ahead of the curve.\u201d<\/em><\/p>\n\n\n\n<p><strong>Strategic partnerships and ecosystem collaboration are accelerating the shift to SDM<\/strong><\/p>\n\n\n\n<p>According to the report, automotive organizations are increasingly recognizing the value of broader collaboration, with nearly two in five partnering with big tech and hyperscalers for critical software, cloud, and data capabilities. While only a few have established joint ventures so far, a third plan to do so within three years. Up to 84% are exploring new supplier markets to build resilience, and nearly 70% are doubling down on in-house development of key components to retain control over brand-defining technologies. Organizations are also restructuring their supply chains for geopolitical resilience, by exploring new sourcing markets including India, Southeast Asia, and Eastern Europe.<\/p>\n\n\n\n<p>Software-defined products and mobility services are also expected to become significant revenue contributors for OEMs. According to the report, their share of OEMs\u2019 total revenue is projected to double, contributing to over 50% by 2035.<\/p>\n\n\n\n<p><strong>AI is driving a new era of innovation in the auto industry<\/strong><\/p>\n\n\n\n<p>The report highlights that a vast majority (85%) agree that AI is increasingly becoming an integral part of automotive software, embedded directly into software features and functions, from improving in-vehicle experiences to powering advanced safety features and cybersecurity.<\/p>\n\n\n\n<p>Over three-quarters (77%) see AI integration into software development, in-vehicle functions, and mobility services as a critical competitive advantage that will reshape the automotive value chain. By reducing costs, boosting productivity and efficiency, and enhancing product quality, AI is propelling the industry into a new era of innovation. Notably, most surveyed organizations view AI integration for ADAS (Advanced Driver Assistance System) and autonomous driving capabilities as extremely significant in their organization\u2019s software-driven strategy.<\/p>\n\n\n\n<p><strong>Software-driven mobility demands an organizational overhaul to reap its full potential<\/strong><\/p>\n\n\n\n<p>According to the survey, most organizations (86%) believe SDM strategy demands an overhaul of the organizational model, leading to significant changes in processes, and the need to build new skill sets. In addition to structural changes, organizations face a range of challenges in software engineering, compliance, safety, cybersecurity, leadership, and talent acquisition. Over eight in ten (83%) organizations identify the creation of a unified software platform<a id=\"_ftnref2\" href=\"#_ftn2\">[2]<\/a> as a key component of their software-driven mobility strategy.<\/p>\n\n\n\n<p><strong>Report Methodology<\/strong><\/p>\n\n\n\n<p>In June 2025, the Capgemini Research Institute conducted a survey of 600 executives from 200 long-established automotive organizations, with no more than four respondents from each organization. These executives represented organizations across four segments: OEMs, suppliers, mobility service providers, and digital natives from countries across North America, Europe, and APAC. The surveys were complemented by interviews with more than fifteen industry experts.<\/p>\n\n\n\n<p><strong>About Capgemini<\/strong><\/p>\n\n\n\n<p>Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 350,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, generative AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2024 global revenues of \u20ac22.1 billion.<\/p>\n\n\n\n<p>Get The Future You Want |&nbsp;<a href=\"http:\/\/www.capgemini.com#_blank\">www.capgemini.com<\/a><\/p>\n\n\n\n<p><strong>About the Capgemini Research Institute<\/strong><\/p>\n\n\n\n<p>The Capgemini Research Institute is Capgemini\u2019s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was ranked #1 in the world for the quality of its research by independent analysts for six consecutive times &#8211; an industry first. Visit us at\u00a0<a href=\"https:\/\/www.capgemini.com\/fi-en\/insights\/research-institute\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.capgemini.com\/researchinstitute\/<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"#_ftnref1\" id=\"_ftn1\">[1]<\/a> By SDM, we mean the full realization of opportunities provided by software for automotive products and services, and the means to achieve it. It is expected to deliver on one hand, significantly enhanced mobility experiences and value for customers and users, and on the other hand, much better control of the overall complexity of vehicles and across the value chain. It focuses on:<\/p>\n\n\n\n<ol style=\"list-style-type:lower-roman\" class=\"wp-block-list\">\n<li>Setting the foundation of a \u201csoftware platform,\u201d that defines all products and services. This includes Software-Defined Vehicles (SDVs), all in-vehicle software, digital user services for mobility and all related backend systems (incl. those ensuring safety, cybersecurity and compliance)<\/li>\n\n\n\n<li>Streamlining \u201csoftware delivery\u201d to craft the products and services. It relies on a \u201csoftware engineering framework\u201d i.e., an integrated and industrialized set of processes, methods, and tools to design, build, operate, and maintain, with a specific focus on testing, quality, and performance<\/li>\n\n\n\n<li>Accelerating to transform into a \u201csoftware company.\u201d It covers the transition of business strategy, execution of change management, and addresses culture and talent.<\/li>\n<\/ol>\n\n\n\n<p><a href=\"#_ftnref2\" id=\"_ftn2\">[2]<\/a> A single software platform to run all customer \u2013 related functions, control, and services as a key component of their SDM strategies<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related news<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about 85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies\" href=\"https:\/\/www.capgemini.com\/fi-en\/news\/press-releases\/85-of-banks-corporate-clients-plan-to-engage-with-a-non-bank-financial-institution-within-the-next-year-as-competition-with-private-capital-intensifies\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Reports<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Mar 16, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t\t&lt;a class=&quot;link-download&quot; 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href=&quot;https:\/\/www.capgemini.com\/fi-en\/wp-content\/uploads\/sites\/26\/2026\/01\/01_06_Capgemini-news-alert_Consumer-Trends-report-1.pdf&quot; aria-label=&quot;Download Press Release&quot; target=&quot;_blank&quot;  type=&quot;download&quot; title=&quot;Opens in a new window&quot;&gt;\n\t\t\t\t\t\t\t&lt;span&gt;Download press release&lt;\/span&gt;\n\t\t\t\t\t\t\t&lt;span&gt;145 KB PDF&lt;\/span&gt;\n\t\t\t\t\t\t&lt;\/a&gt;\n\t\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Consumers are balancing spending on essentials with small indulgences that provide an emotional boost\" href=\"https:\/\/www.capgemini.com\/fi-en\/news\/press-releases\/consumers-are-balancing-spending-on-essentials-with-small-indulgences-that-provide-an-emotional-boost\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><\/div><\/div><\/section><\/div>","protected":false},"excerpt":{"rendered":"<p>The automotive industry is undergoing a transformation as software becomes increasingly central to its business strategy and operations. According to a new report from the Capgemini Research Institute, \u2018The software-driven mobility era: Beyond vehicles\u2019, nearly all automotive organizations (92%) now anticipate that every automotive company will transition to a software company to support Software Defined Vehicles (SDVs) and software-driven mobility (SDM)services. <\/p>\n","protected":false},"author":376,"featured_media":0,"template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":true,"cg_dt_link_disabled":false,"footnotes":"","related_resource_url":"https:\/\/www.capgemini.com\/fi-en\/wp-content\/uploads\/sites\/26\/2025\/09\/2025_09_08_Capgemini_The-era-of-software-driven-mobility-Report_PressRelease.pdf","related_resource_id":548181,"related_resource_size":"162 KB","related_resource_type":"pdf","cg_author":0,"featured_focal_points":""},"tags":[],"press-release-type":[128],"brand":[],"class_list":["post-548178","press-release","type-press-release","status-publish","hentry","press-release-type-reports"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The automotive industry accelerates toward a software-driven future, with revenue share expected to double during the next decade - Capgemini Finland<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capgemini.com\/fi-en\/news\/press-releases\/the-automotive-industry-accelerates-toward-a-software-driven-future-with-revenue-share-expected-to-double-during-the-next-decade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The automotive industry accelerates toward a software-driven future, with revenue share expected to double during the next decade\" \/>\n<meta property=\"og:description\" content=\"The automotive industry is undergoing a transformation as software becomes increasingly central to its business strategy and operations. 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